Oct 25, 2020

Equity Bank acquires Almena State Bank

Posted Oct 25, 2020 10:55 AM
Photo by Lisa Herman / Norton Telegram
Photo by Lisa Herman / Norton Telegram

Norton Telegram


At 4:27 p.m. Friday afternoon, the Office of the State Bank Commissioner sent to the Telegram a press release that indicated the Almena State Bank, based in Almena, was closed today by the Kansas Office of the State Bank Commissioner. The Federal Deposit Insurance Corporation was appointed as receiver.

To protect depositors, the FDIC entered into a purchase and assumption agreement with Equity Bank, of Andover to acquire Almena State Bank. As of Sept. 30, Almena State Bank had approximately $65.8 million in total assets and $64.8 million in total deposits. According to the press release, Almena State Bank had operated with financial difficulties since 2018. Continued operating losses resulted in the bank's capital becoming too low to allow continued operations under federal and state law.

On Monday,the two offices of Almena State Bank (Almena and Norton) will reopen as branches of Equity Bank. Depositors of Almena State Bank will automatically become depositors of Equity Bank. Deposits will continue to be insured by FDIC, so customers do not need to change their banking relationship in order to retain their deposit insurance coverage to applicable limits.

This evening and over the weekend, depositors of Almena State Bank can access their money by writing checks, using debit cards or ATMs. Checks drawn on Almena State Bank will continue to be processed. Loan customers should continue to make their payments as usual.

Questions regarding this action may be addressed to the Office of the State Bank Commissioner at 785-296-2266.